Jefferies International gave a boost to Kingfisher PLC (LON:KGF) on Wednesday, with the stock rallying after falls in the previous session following a trading update, thanks to an upgrade in rating by the US broker.
In a note to clients, Jefferies’ analysts upped their stance for Europe’s leading home improvements retailer to ‘buy’ from ‘hold’ and raised their price target to 400p from 310p.
READ: Kingfisher posts fall in third quarter sales as weak performance in France offsets strong growth at Screwfix
In mid morning trading, the FTSE 100-listed stock was 2.5%. or 7.7p higher at 316.2p, having shed over 1% on Tuesday.
The analysts said that Kingfisher’s investment attractions are improving as disruption reduces and there is evidence of a positive sales response to its ONE product builds.
They added that, in their view, the potential for a positive “inflection in French market share and resilience to UK cyclical risks should be better valued.”
The analysts concluded that its new price target “presumes investors will be willing to pay a c.13x forward PE (6.6% FCY) a year from now.”